The KSE-100 closed marginally above 3,400 level on last day of the week,
yet another record high level. Two factors are said to be responsible
for the gains, over flowing liquidity and exceptionally high investment
in carry over trade (COT). However, the point of concern is speculators'
continued interest in second and third tier scrips.

Market punters are split about the future movement of
the index. The growing concern is that after June 30, 2003 the index
would loose about couple of hundred points in quick succession. The
belief is based on the forecast that institutional investors would
indulge in profit-taking soon after the end of financial year.

However, some analysts believe that index may
continue its upward movement due to high liquidity. The latest
acceptance of only Rs 1.5 billion of 6-months T-Bills, as against the
total offer of above Rs 19 billion, exhibits the distress level of
financial institutions. The auction of Pakistan Investment Bonds will
only be a ritual as the bidders have already entered into future
agreements in the secondary market at a premium. It is expected that a
foreign bank will pickup the largest chunk.

Yet another rumour creating uneasiness among the
bankers is that the central bank may ask them to withdraw the amounts
extended against NSS products. Technically, this was a bad transaction
and banks should ask the borrowers to repay the amounts. However, it
seems that central bank may not like to be 'so harsh' because banks are
pulling their strings.

INDUS MOTOR COMPANY

The company has posted Rs 383.7 million profit after
tax for the quarter ending March 31, 2003 as compared to a profit of Rs
64.7 million for the corresponding period of last year. The increase in
profit can be attributed to higher sales, going up from Rs 1,589.9
million to Rs 4,061.6 million. A closer look at nine-moth figures also
confirm that sale for the period more than doubled, from Rs 4,984
million to Rs 10,250 million. Profit after tax for the period also went
up from Rs 156 million to Rs 801 million. EPS skyrocketed from Rs 1.73
to Rs 10.19. The Board of Directors also approved distribution of 20%
interim dividend among the shareholders.

ATTOCK REFINERY

The company has posted Rs 475 million profit before
tax from refinery operations during the first nine months of ongoing
financial year as compared to a profit of Rs 608 million for the
corresponding period of last year. The decline in profit can be
attributed to the hike in cost of goods sold. However, the decline was
contained by the strict control on operating expenses. The management
was able to bring down operating expenses from Rs 338 million to Rs 218
million, mainly by containing financial and other charges. Increase in
other income also helped in improving the bottom line. Net sales went up
from Rs 15,164 million to Rs 17,068 million. However, cost of goods sold
hiked from Rs 14,042 million to 16,343 million. Despite the decline in
after tax profit, the Board of Directors preferred to improve interim
dividend payout from 15% for the previous year to 20% for the ongoing
year.

SINDH ABADGAR'S SUGAR MILLS

Despite a difficult period for the sugar mills
located in Sindh, the company managed to post Rs 34 million gross profit
for the first half ending March 31, 2003 as against a gross loss of Rs 2
million for the corresponding period of last year. While the management
was successful in containing operating expenses, financial charges went
up. The increase in other income helped in improving the bottom line.
Sales for the six-month period went up from Rs 283 million to Rs 316
million. Operating expenses came down from Rs 29.6 million to Rs 22.4
million. Financial charges went up from Rs 17.6 million to Rs 23.6
million. Other income grew from about Rs 5 million to Rs 12 million.

SHADMAN COTTON MILLS

The company has posted Rs 15.872 million profit after
tax for the first half of ongoing financial year, marginally lower than
the profit earned during the corresponding period of last year. Its
current provision for tax was also lower but provision of about Rs 20
million for deferred tax resulted in Rs 10.5 million loss after tax that
reduced its accumulated profit to Rs 113 million. Sales came down from
Rs 1,549 million to Rs 855 million. Gross profit declined from Rs 160
million to Rs 85 million. However, reduction in operating expenses and
financial charges helped in improving the bottom line.

OLYMPIA
TEXTILE MILLS

The company has posted Rs 2 million profit before tax
during the first half ending March 31, 2003 as compared to a loss of Rs
7.4 million for the corresponding period of last year. The story of this
turnaround started with increase in sales and decrease in operating
expenses and financial charges. Increase in other income further
improved the bottom line. However, a point of concern is huge
accumulated losses of the company, exceeding Rs 102 million as at March
31, 2003.